About Walt Disney Company (The)
The Walt Disney Company operates as an entertainment company in Americas, Europe, and the Asia Pacific. It operates in three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also provides direct-to-consumer streaming services through Disney+, Disney+ Hotstar, and Hulu; sports-related video streaming content through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to television and video-on-demand services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts, such as Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. Further, it licenses its intellectual property (IP) to a third party that owns and operates Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.
Walt Disney Company (The) (DIS) is a Communication Services company in the Entertainment industry with a market capitalisation of $184.2B. The stock trades at 22.00x trailing earnings and yields 1.42%.
- Sector
- Communication Services
- Industry
- Entertainment
- Market cap
- $184.2B
- P/E ratio
- 22.00
- Forward P/E
- 14.27
- EPS (TTM)
- $4.85
- Revenue (TTM)
- $98.9B
- Free cash flow
- $4.9B
- Profit margin
- 8.7%
- Dividend yield
- 1.42%
- Beta
- 1.41
- Shares outstanding
- 1.7B
Financial health: Weak4.5/10
3 strengths, 4 concerns. Weakest points: current ratio, return on equity, earnings growth and 1 more.
- Debt to equity: 0.38 (Strong, benchmark < 0.5) — Debt of 0.38x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 3.6y (Watch, benchmark < 4 years) — Net debt of $36.3B is 3.6x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 0.71 (Concern, benchmark > 1.5) — Short-term assets cover only 0.71x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 8.0% (Concern, benchmark > 15%) — Earns 8.0% on shareholder equity, well short of the > 15% mark.
- Gross margin: 37.6% (Watch, benchmark > 40%) — Keeps 37.6% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 8.7% (Watch, benchmark > 10%) — Turns 8.7% of revenue into profit, short of the > 10% mark.
- Free cash flow: $10.1B (Strong, benchmark positive) — Generated $10.1B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 6.8% (Watch, benchmark > 10%) — Revenue changed 6.8% year on year, short of the > 10% mark.
- Earnings growth: -48.3% (Concern, benchmark > 10%) — Earnings changed -48.3% year on year, well short of the > 10% mark.
- PEG ratio: 2.80 (Concern, benchmark < 1) — At 2.80, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 30.9% (Strong, benchmark < 60%) — Pays out 30.9% of earnings as dividends, leaving room to keep paying.